CYRIL MBAH, Abuja
The Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with Africa Finance Corporation (AFC) to jointly fund three projects, including a $1.3 billion refinery, a comprehensive geoscience mapping exercise, and an investment vehicle to realize the goals.
The Minister of Solid Minerals Development, Dele Alake, described the deal as a landmark agreement poised to transform the mining sector and increase its contribution to the nation’s Gross Domestic Product (GDP).
The alumina refinery is expected to generate 1 million tonnes of bauxite ore per annum and contribute $1.2 billion to GDP annually, over $25 billion to the national economy across its lifecycle, and generate $8 billion in foreign exchange earnings.
The project is Nigeria’s largest mining-sector private investment and a landmark foreign direct investment.
Initial feasibility studies have confirmed the project’s competitiveness and commercial viability.
Minister Alake has granted all necessary approvals to fast-track the AFC-SMDF investments, directing relevant agencies to ensure seamless processing and grant of all requisite permits, titles, and regulatory clearances.
Executive Secretary of SMDF, Hajia Fatima Shinkafi, expressed delight at the historic feat, stating it represents the agency’s largest funding project since its inception.
The deal demonstrates the Federal Government’s resolve to accelerate the development of the mining sector, with the minister confirming that the Ministry’s reform programme has secured the investment environment, modernized the regulatory framework, and established a world-class mineral licensing regime.
Africa Finance Corporation (AFC) and the Federal Government through the Solid Minerals Development Fund (SMDF) signed the Memorandum of Understanding during a recent meeting.
A statement issued by Segun Tomori, Special Assistant on Media to the Honourable Minister of Solid Minerals Development, on Sunday said the MOU was the climax of talks between AFC and SMDF to jointly fund the construction of a $1.3 billion alumina refinery, estimated to generate 1 million tonnes bauxite ore per annum, utilising a modern Bayer-process flowsheet with an on-site gas-fired cogeneration plant for steam and power.
“We are very proud and honored to facilitate this phenomenal milestone, which is quite unprecedented since the inception of SMDF.
It is a $1.3bn CAPEX. SMDF has come of age to be able to sit here and sign this deal with AFC.
I thank the AFC for collaborating with us to boost the value addition policy of my boss, Dele Alake,” Shinkafi added.
Initial feasibility studies conducted by AFC and SMDF have confirmed the project’s competitiveness and commercial viability, validating the Ministry’s efforts to position Nigeria as a globally competitive minerals destination.
AFC and SMDF also agreed to set up a joint strategic investment vehicle to accelerate the development of identified exploration assets across Nigeria, to drive rapid exploration, development, and production of selected exploration leases upon the execution of a successful exploration campaign.
SMDF boss, Hajiya Fatima Shinkafi signed on behalf of the Federal Government, Franklin Edochie, Deputy Director & Head, Metals & Mining of the African Finance Corporation (AFC) signed on behalf of the AFC while President/CEO, AFC, Samaila Zubairu and the minister witnessed the ceremony.
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